23-Jan-2014, GMT 14:28
After yesterday’s fabulous unemployment figure speculations over future BoE rate path exploded. With Unemployment Rate only 0.1% above MPC’s threshold some questions about further forward guidance arose.
Citibank says, that MPC January meeting minutes signalized that UK economy is gaining strength. BoE expects Unemployment Rate to reach 7% threshold earlier than anticipated but stressed, that rates may remain at current levels for longer time.
Supportive data in coming days may keep Pound in a bid mood provoking market to speculate over QE removal. Citibank expects that BoE may rise its Official Bank Rate even in 4Q2014.
Therefore Citi announced, that it keeps long positions on GBP against JPY, CHF and EUR.
According to our GBP basket it stays in strong uptrend set to resume after some corrective move lower.
Click to enlarge!
